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Showing posts from February, 2022

Forex Trading Strategy : MACD + ADX Trading Strategy

  This simple trading strategy can be applied to any instrument on any time frame. This strategy using two ocillator, ADX with 16 period setting and MACD setting of 3, 9, 16. Some say that a trend indicator alongside an oscillator is the most efficient combo. Any of these three pair suits the strategy: EUR/USD, GBP/USD, AUD/USD. Experienced traders/investors stick to these ones because majors have more predictable behavior, and tech analysis works much better on them. Recommended time frame should be on shorter period. To open a position, start by analyzing the activity of ADX with period 16. Make sure you choose correct settings when adding the indicator to the trading terminal. Signals in the strategy do not differ from "classic" ADX signals. As you know, the author claims that a crossing of +Di and -Di as it is already gives a market entry signal. For example, if +Di crosses -Di from below, this is a signal to buy, and if -Di crosses +Di from above, this signals

EURO Week forecast : Geopolitical Risks and an Increasingly Hawkish Fed, ECB on the Sidelines

  EUR/USD 1 Hr Chart The one-week implied volatility of the EUR/USD has reached its highest level since the middle of December, following reports last Friday that US intelligence suggested Russia could invade Ukraine this week. If tensions between the two countries continue to rise, the single currency may be vulnerable to a rapid selloff. Markets dislike uncertainty, and the prospect of an invasion destabilising European politics and economic dynamics could cause traders to flee the eurozone. Crude oil prices are also rising as a result of supply disruption concerns between the West and Russia, which is also a key player in OPEC+. Higher oil prices could also pose a problem for the European Central Bank (ECB). Since the ECB's February monetary policy announcement, ECB President Christine Lagarde has spent the majority of her time downplaying increasingly hawkish expectations. Earlier this month, this resulted in a brief 2-day surge in the Euro. Even one of the more dovish central

How to Trade With Leverage in Forex

What is Leverage   Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading. On Forex, you can easily find brokers offering up to 2000:1 leverage, and there's one that claims to offer unlimited leverage to its clients. In the stock market, meanwhile, you'd barely come across a broker that offers over 20:1 leverage.  Leverage in Forex   Leverage got especially popular in Forex, as it is less volatile, and one needs to have their funds leveraged in order to boost the performance, and, subsequently, the profits. The EUR/USD, for instance, moved just 1.10% in May, which would have returned you a 1.10% profit without leverage (1:1). Over the same period, Tesla yielded 14% profit to the shareholders. This way, once the Forex brokers stop offering leverage, the gains in the market will get ridiculously small for the retail traders, and those will have to mov

Forex Top 4 Currency Pairs Trading Daily In The Forex Market

This article provides a brief overview of seven important currency pairs traded on the Forex market. These are the most popular pairings among traders and investors, and they have great liquidity and low spreads. EUR/USD (EURO vs Dollar) The Euro (EUR) is a single European currency that was introduced in 1999 to replace all national currencies in the European Union. Given its status, the EUR is a reflection of the state of the European Union's economy and is highly sensitive to European macroeconomic figures. The EUR/USD pair leads the Forex market in terms of daily trading volume, accounting for about 20% of total trading volume. The EUR/USD rate depicts the current exchange rate between the currencies of the EU and the United States. If the pair is increasing in value, it suggests that the EUR is becoming more valuable against the USD, and vice versa. The EUR/USD rate is heavily influenced by economic and political news from these regions. The EUR/USD pair began trading with a do